Compliance Report of the Members' Allowances Office - Manitoba Legislative Assembly
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Manitoba Legislative Assembly Compliance Report of the Members’ Allowances Office For The Period April 1, 2016 to March 31, 2019
Date March 10, 2020 The Honourable Myrna Driedger Speaker of the Legislative Assembly Room 244, Legislative Building Winnipeg, Manitoba R3C 0V8 Dear Madam Speaker: We have the honour to transmit the report entitled, Compliance Report of the Members’ Allowances Office for the Period April 1, 2016 to March 31, 2019, to be laid before the Members of the Legislative Assembly in accordance with the provisions of Sections 52.6.1(1), 52.6.1(2) and 52.6.1(3) of The Legislative Assembly Act. The Legislative Assembly Act requires that the Report, including the Auditor’s opinion, is to be tabled within 15 days on which the Assembly is sitting after the Speaker receives the Report. The report is also to be distributed to the Members of the Legislative Assembly and to the Commissioner appointed under Section 52.7 of The Legislative Assembly Act and is also to be posted on the Legislative Assembly’s website. Respectfully submitted, Original signed by: Original signed by: Clerk of the Manitoba Legislative Assembly Director Members’ Allowances Office 2
Table of Contents Overview ……………………………………………………………………. 4 Legislative Requirement ………………………………………………………… 7 Auditor General’s Opinion ……………………………………………………… 8 Amounts Paid, Totals by Allowance ………………………………………….. 10 Issues Arising of an Administrative or Interpretive Nature……………….. 12 Members’ Allowances Office Issues Arising During the 2017-2019 Fiscal Years………………………………… Issues Carried Forward from the Prior Report (2012-2016 Fiscal Years)……… Administration Branch Issues Arising During the 2017-2019 Fiscal Years………………………………… Issues Carried Forward from the Prior Report (2012-2016 Fiscal Years)……… Statements of Compliance–Verification of Amounts Paid………………………… 27 Members’ Allowances Office …………………………………………... Administration Branch …………………………………………………. Appendices 29 Appendix A – Commissioner of Salaries, Allowances and Retirement Benefits Summary of Decisions, July 2017 Appendix B – Legislative Assembly Management Commission Annual Reports – Commission Decisions Impacting Members’ Allowances Office (MAO) Approval of MLA Expense claims……………………………………….. Appendix C – Commissioner of Appeals Decisions (2017-2019 Fiscal Years) Impacting MAO Approval of MLA Expense claims Appendix D – Members’ Allowances Regulation Appendix E – Members’ Retirement Benefits Regulation–Part 5 3
Overview Background of the Report This report consists of a Compliance review of the operations of the Members’ Allowances Office (MAO) pertaining to approval of MLA expense claims based on decisions of the Commissioner on Salaries, Allowances and Retirement Benefits, the Appeals Commissioner and by decisions made by the Legislative Assembly Management Commission that impact on the approval of MLA expense claims. This Compliance Report covers the time period from April 1, 2016 to March 31, 2019, which are the fiscal years since the last provincial general election and the last Compliance Report. Issues of an interpretive nature requiring consideration by the Members’ Allowances Office or the Administration Branch or an opinion from the Appeals Commissioner or further legislative or regulatory changes are identified in the report. Supporting materials are provided in several attached appendices. Appendix A consists of Decisions Made by the Commissioner of Salaries, Allowances and Retirement Benefits in 2017, while Appendix B contains Legislative Assembly Management Commission decisions for the periods covered by the Compliance Report that have an impact on MAO approval of expense claims. Appendix C lists the Commissioner of Appeals decisions that also impact MAO approval of expense claims while Appendix D contains the Members’ Allowances Regulation. Finally, Appendix E contains Members’ Retirement Benefits Regulation – Part 5. The Compliance Report identifies a number of issues arising of an administrative or interpretative nature from the periods April 1, 2016 to March 31, 2019 in the following areas: vehicle leases; rental vehicle insurance; out of province travel entitlements; reserve fund fees; cable television–second temporary residence and office space; internet phone service; and communication by internet or other electronic means. 4
Contents of the Report The Compliance Report, for each type of allowance paid to Members for the reporting period is to consist of: 1) Auditor General’s opinion The Report has been audited by the Auditor General and his opinion is submitted together with the Report, to the Speaker for tabling in the Assembly. The Auditor General’s opinion is included within this Report, beginning on page 8. 2) Amounts paid, totals by allowance The Amounts Paid section of financial information is for the three fiscal years of 2016/17, 2017/18 and 2018/19. 3) Issues arising of an administrative or interpretive nature The Issues Arising of an Administrative or Interpretive Nature section, as required by the Act, covers the period from April 1, 2016 to March 31, 2019. The purpose of this reporting requirement is to identify the administrative or interpretative issues that should be reviewed and addressed by the Commissioner if one appointed after the general election of September 10, 2019 to determine whether or not the current Regulations and policies are operating as intended. When less than 42 months pass between provincial general elections, The Legislative Assembly Act advises in s.52.7(2) that the Legislative Assembly Management Commission can defer the appointment of a Commissioner until after the next general election to review MLA salaries, allowances and retirement benefits. However, a Commissioner can be appointed to address a specific issue. In addition, the Commission also has the ability to amend the Regulations for administrative or technical amendments or to address unforeseen circumstances that have arisen since the last Commissioner’s report. Following the 2019 provincial general election, the Commission opted to not appoint a Commissioner to review MLA salaries, allowances and retirement benefits and to defer appointing a Commissioner until after the next provincial general election. 5
In regard to this purpose, matters were considered to be an administrative or interpretive issue if: - the matter involved stretching the meaning of a provision beyond what its ordinary meaning was intended for; - administering a provision in accordance with its ordinary meaning would create an absurd result or would be inconsistent with the operation of the system as intended; - the Office of the Auditor General has identified it as an issue in a previous report on allowances; or - the administrative process mandated by the Regulation has become problematic for the Members’ Allowances Office and/or for Members and in the opinion of the Members’ Allowances Office, should be reviewed by the Commissioner. 6
Legislative Requirement This Report is made under Sections 52.6.1(1), 52.6.1(2) and 52.6.1(3) of The Legislative Assembly Act, enacted on December 10, 2009, June 17, 2010 and June 16, 2011. The Sections read as follows: Compliance report 52.6.1(1) Within six months after each general election, the manager of the Members' Allowances Office referred to in section 52.29 must (a) prepare a report that, for each type of allowance paid to members for the period consisting of all fiscal years that ended during the immediately preceding Legislative Assembly, (i) states the total of the amounts paid for the period, (ii) describes any administrative or interpretive issues that arose in the administration of the allowance, and (iii) verifies whether the amounts were paid in compliance with this Part and the regulations under this Part; (b) arrange for the report to be audited by the Auditor General; and (c) submit the report, together with the auditor's opinion, to the Speaker. Report to be tabled 52.6.1(2) The Speaker must table a copy of the report, together with the auditor's opinion, in the Assembly on any of the first 15 days on which the Assembly is sitting after the Speaker receives the report. Report to be distributed and made public 52.6.1(3) The Speaker must also ensure that, within 15 days after receiving it, the report, together with the auditor's opinion, (a) is distributed to the members and to the commissioner appointed under section 52.7; and (b) after being distributed to the members, is posted on the Assembly's website. 7
INDEPENDENT PRACTITIONER'S REASONABLE ASSURANCE REPORT ON COMPLIANCE To the Legislative Assembly of Manitoba: We have undertaken a reasonable assurance engagement of the accompanying Compliance Report of the Members’ Allowances Office of the Manitoba Legislative Assembly (“the Compliance Report”) during the period April 1, 2016 to March 31, 2019, with the specified requirements established in subsection 52.6.1(1)(a) of The Legislative Assembly Act (Act), as outlined in the Compliance Report. Management's Responsibility Management is responsible for measuring and evaluating the Manitoba Legislative Assembly Members’ Allowances Office’s compliance with the specified requirements of the Act and for preparing the Compliance Report. Management is also responsible for such internal control as management determines necessary to enable the Manitoba Legislative Assembly Members’ Allowances Office’s compliance with the specified requirements. Our Responsibility Our responsibility is to express a reasonable assurance opinion on management's Compliance Report based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the Canadian Standard on Assurance Engagements 3530, Attestation Engagements to Report on Compliance. The standard requires that we plan and perform this engagement to obtain reasonable assurance about whether management’s Compliance Report is fairly stated, in all material respects. Reasonable assurance is a high level of assurance, but is not a guarantee that an engagement conducted in accordance with this standard will always detect a material instance of non-compliance with specified requirements when it exists. Instances of non-compliance can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users of our report. A reasonable assurance compliance reporting engagement involves performing procedures to obtain evidence about management's statement of compliance with specified requirements. The nature, timing and extent of procedures selected depends on our professional judgment, including an assessment of the risks of material misstatement of management, whether due to fraud or error, and involves obtaining evidence about management's statement. Basis for Qualified Opinion for Scope Limitation The part of the Compliance Report required by subsection 52.6.1(1)(a)(ii), entitled “Issues Arising of an Administrative or Interpretive Nature”, describes administrative and interpretive issues that arose in the administration of the allowances. The completeness of this list is not susceptible of satisfactory 8
verification for reasonable assurance. Accordingly, our verification of these issues was limited to the records of the Manitoba Legislative Assembly, including the Members’ Allowances Office (MAO) and Legislative Assembly Management Commission meeting minutes and MAO policies. Consequently, we were unable to determine whether any additional issues should be reported in the part entitled “Issues Arising of an Administrative or Interpretive Nature”. We believe the evidence we obtained is sufficient and appropriate to provide a basis for our qualified opinion. Information relevant to the Manitoba Legislative Assembly Members’ Allowances Office’s compliance with the specified requirements of the Act is set out in management's Compliance Report. Our Independence and Quality Control We have complied with the relevant rules of professional conduct / code of ethics applicable to the practice of public accounting and related to assurance engagements, issued by various professional accounting bodies, which are founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The office applies the Canadian Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements and, accordingly, maintains a comprehensive system of quality control, including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Qualified Opinion In our opinion, except for the inclusion of additional issues which we may have determined to be necessary had we been able to satisfy ourselves concerning the completeness of the list of issues as described in the fifth paragraph of our practitioner's report, management’s Compliance Report that the Manitoba Legislative Assembly Members’ Allowances Office complied with the specified requirements in subsection 52.6.1(1)(a) of The Legislative Assembly Act during the period April 1, 2016 to March 31, 2019, is fairly stated, in all material respects. We do not provide a legal opinion on the Manitoba Legislative Assembly Members’ Allowances Office’s compliance with the specified requirements. Purpose of Compliance Report Management's Compliance Report has been prepared to report to the Manitoba Legislative Assembly on the Manitoba Legislative Assembly Members’ Allowances Office’s compliance with the specified requirements established in the Act. As a result, management’s Compliance Report may not be suitable for another purpose. Office of the Auditor General Winnipeg, Manitoba February 27, 2020 9
Amounts Paid, Totals by Allowance For The Fiscal Years Ended March 31, 2017 to March 31, 2019 The allowances paid reflected in the table below are in compliance with The Legislative Assembly Act, Part 2, and Members’ Allowances Regulation. Type of Allowance Amounts Paid $ Temporary Residence 1,338,827 and Living Expenses Commuting Expenses 22,938 Travel Expenses 1,565,270 Constituency Assistant 7,437,458 Salaries Constituency Office Rent 2,323,213 Constituency Expenses 7,439,034 Committee Expenses nil Note to Amounts Paid, Totals by Allowance Unreported Amounts and Expenses related to Other Years The amounts paid reported in the table above include previously unreported claims for allowances and recoveries dating to allowances incurred before April 1, 2016 of $92,046 and $12,524, respectively, with a net total of $79,522 and exclude amounts paid of $834 that related to a future year’s expenses, which represent prepaid insurance. 10
Amounts Paid, Totals by Allowance For The Fiscal Years Ended March 31, 2017 to March 31, 2019 The allowances paid reflected in the table below are in compliance with The Legislative Assembly Act, Part 2, and Members’ Retirement Benefits Regulation, Part 5. Type of Allowance Amounts Paid $ Severance Allowance 2,276,061 11
Issues Arising of an Administrative or Interpretive Nature For the three fiscal year periods April 1, 2016 to March 31, 2019 Members’ Allowances Office 1. Travel Allowance Vehicle Leases The Members’ Allowances Regulation under section 21.1 provides for authorized travel expenses to the extent that they are incurred in the performance of a Member’s duties as a Member or by a person engaged as the Member’s representative on constituency business. 21.1(b) provides for the actual expense of transportation other than by private vehicle. A Member received reimbursement for the monthly vehicle expense supported by the lease agreement and proof of payment. The travel allowance is reimbursement for travel on Constituency and/or Legislative business. Members are to identify the starting point, destination, number of kilometers, and purpose when claiming private vehicle mileage. This informationwas not identified as a requirement with vehicle leases. The reimbursement of lease payments related to the personal use of the leased vehicle may be determined to be a taxable benefit to a Member. Rental Vehicle Insurance A Member purchased additional insurance when they rented a vehicle. The Regulation is not specific to other transportation and associated expenses. The Commissioner provided his opinion that it was an eligible expense and provided for the Members a guideline to the options available. It is our recommendation to the next Commissioner for Allowances that the Commissioner review other transportation and amend the Regulation to specify the eligible expenses. Members’ Allowances Regulation, 21(1)(b) 12
2. Out of Province Travel The Members’ Allowances Regulation provides for out of province travel, however it does not specify the eligible expenses for reimbursement. The Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017 provided the “Decision on Maximum Out-of- Province Travel Expenses” to amend Section 21(3) to identify the following expenses: • the actual expense of transportation other than by private vehicle; • the expense of transportation by private vehicle, equal to the kilometric distance multiplied by the kilometric rate; • the expense of meals at the receipted rate or at the out-of-province meal rates; • the expense of commercial accommodation standard room rate. However, this amendment to the Members’ Allowances Regulation was not completed. It is our recommendation to the next Commissioner for Allowances that the Commissioner amend the Regulation to specify eligible expenses under Out of Province Travel. Members’ Allowances Regulation, s.21(3) 3. Reserve Fund Fees Members, who own a condominium as a second permanent residence, which they have designated as a temporary residence, may claim monthly condominium common element fees as eligible expenses. However, as condominium owners, they are also required to contribute to their Condominium Association’s reserve fund in addition to monthly condominium fees. On review, the Commissioner provided the decision “payments to the reserve fund are not eligible under the Regulation. The Regulation specifically mentions common element fees, but is silent on reserve fund contributions.” It is our recommendation to the next Commissioner for Allowances that the Commissioner amend the Regulation to stipulate that reserve fund contributions are not authorized expenses. Members’ Allowances Regulation, s.25.1(4) 13
4. Cable Television Second Temporary Residence The Members’ Allowances Regulation provides for cable television in the same category as utilities under authorized temporary residence expenses. Members’ Allowances requested the Commissioner’s opinion as to whether expenses for cable service could be claimed under the living expenses as with phone service and internet. Cable service is not viewed as a utility expense. The Commissioner advised that it is a reasonable inclusion and should be brought to the attention of the next commissioner when the Regulation is reviewed in its entirety. It is our recommendation to the next Commissioner for Allowances that the Commissioner amend the Regulation to provide for cable television as an authorized expense under living expenses to the extent that it is not claimed as residence expense. Members’ Allowances Regulation, s.25(1)(ii), 25.1(4) Office Space The Members’ Allowances Regulation provides for cable service in a Member’s constituency office. In meeting with the Commissioner Member’s Allowances requested cable service be an eligible expense under Office Operation not as a utility under Office Space. The Regulation was amended in 2017 to include basic cable service as an eligible expense under Constituency Office Operation; however, cable television remains as an eligible expense under Constituency Office Space as well. It is our recommendation to the next Commissioner for Allowances that the Commissioner amend the Regulation to remove cable television as an eligible expense under Constituency Office Space. Members’ Allowances Regulation, s.11(1)(b) and s.12(1)(c.1) 14
5. Internet Phone Service The technology is ever changing and phone service for businesses is no longer limited to the traditional landline but also available through an internet service provider. On review, the Commissioner provided the decision that phone service through the internet would be an authorized expense. Members’ Allowances Regulation, s.12(1)(d) The Members’ Allowances Regulation s.12(1)(d)(iX) was amended in accordance with the “Decision on Communication Services” provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 6. Communication by Internet or other electronic means The Members’ Allowances Regulation provides for: • the expense of establishing and maintaining a web home page; and • the expense of services relating to blogging and social networking. Social media platforms may include content found to be partisan in nature. Websites often link or display the posts to facebook for example. The Commissioner advised that social media addresses are not allowable, but Members may include the icons in their advertisements. We recommend the next Commissioner for Allowances review these methods of communication and advise whether the expenses remain eligible expenses in providing non-partisan access and service to constituents. Members’ Allowances Regulation, s.12(1)(h)(i)(ii) 15
Issues Arising of an Administrative or Interpretive Nature Issues Carried Forward from the Prior Report (2012-2016 Fiscal Years) Members’ Allowances Office 1. Constituency Advertising With advances in technology the medium for advertising continues to evolve. Various methods were presented for consideration over the course of the five years, which required interpretation in order to consider whether a specific new type of advertising fell within the provisions of the advertising Regulations for reimbursement. Examples of some of these newer forms of advertising include: a) Smart tag, Facebook, Instagram, Twitter. Currently icons for these items are eligible in an ad. b) Movie theatres – whether placement of an ad at a movie theatre outside the Member’s constituency is allowable for reimbursement purposes. c) Robocalls which are used as invitations to constituents to attend a Member’s own event. d) Slide show/video advertisement at events. e) Vendor website advertising. It is our recommendation to the next Commissioner for Allowances that the Commissioner consider what forms of media can be used for advertising under this Allowance and whether the trend for increased advertising expenses within the Constituency Allowance should be addressed. Members’ Allowances Regulation, s.12 (1) (i), s.14.1 (1), s.14.1(2) Update The Commissioner for Allowances decided not to amend the regulation. “Decision on Advertising” was provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 16
2. Event Tickets The Members’ Allowances Regulation under section 14(g) provides for “the member’s cost of up to two tickets to attend a non-profit or charitable community event (which for the greater certainty, does not include a sporting event, a golf or other sporting tournament, a social, or a service club meeting). To determine whether an event would be an eligible expense, the Members’ Allowances Office requests the background documentation be provided that indicates whether the event host meets the requirement of being non-profit or charitable. There has been a significant increase in requests from small organizations for Members to attend events where this documentation is not readily available. Event tickets are not always easily recognized as being a community event. It is our recommendation to the next Commissioner for Allowances that the Commissioner consider providing a more precise definition of what constitutes a non-profit or charitable community event as well as what reasonable documentation is required to submit an expense claim for reimbursement under this Allowance. Members’ Allowances Regulation, s.14 (g) Update The Commissioner for Allowances decided not to amend the regulation. “Decision on Event Tickets" was provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 3. Out of Province Travel - Conference More than one day of travel Members of the Legislative Assembly from time to time attend Legislative conferences under the auspices of the Parliamentary Associations budget for the Legislative Assembly where registration fees, basic hotel rates and transportation to the conference destination are paid on behalf of the Member. MLAs do have the option of receiving what is known as the equivalent to airfare (lowest return direct economy airfare equivalent) if choosing to drive to the conference as opposed to flying. If Members take the equivalent to airfare option, the amount is deducted from any travel claim that the MLA makes through 17
Members’ Allowances Office for the conference expenses that have not already been paid for on behalf of the Member. This ensures no MLA is reimbursed twice by two separate Assembly Offices. The standard practice for the Members’ Allowances Office is to deduct the equivalent to airfare from the travel being claimed at the kilometric rate and allow for one overnight stay and the meals for one day at the per diem rate. If the distance to the conference involved more than one day’s worth of driving, the question arose whether the additional travel could be eligible for reimbursement from the Member’s Travel Allowance. On review, the Commissioner provided the decision that where there are two days or more of driving involved in attending a conference, the Member shall be entitled to claim the appropriate expense for mileage, overnight stays, and per diem meal costs by submitting an expense claim to MAO (less the equivalent to airfare reimbursement provided by the Parliamentary Associations budget). Update “Decision on Conference Travel” was provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly September 2012. Travel expense to attend from vacation spot On occasion, a Member while on vacation departs from the vacation destination to attend a conference. The question arises of whether the starting point for the travel to the conference destination should be considered the originating point in Manitoba or from the vacation destination. The existing practice for claiming mileage is from the starting point to the destination under the travel allowance. Members’ Allowances would apply the same principle for these travel expenses. On review, the Commissioner provided the decision that the starting point would be considered to be from the vacation point to conference, rather than from the originating point of departure in Manitoba. Members’ Allowances Regulation, s.21 (3) Update Decision was provided May 22, 2014 by the Commissioner for Allowances in response to a request for an opinion from a Member. 18
4. Expenses after ceasing to be a Member After ceasing to be a Member, Members of the Legislative Assembly have claimed the expense of hiring individuals to assist in closing the constituency office. The work involves boxing of files, arranging for utility services to be terminated and so forth. The current practice has been for the Members’ Allowances Office to provide the advice to former Members that the one time employment to be for a reasonable length of time and expense for completion of the work. It is our recommendation to the next Commissioner for Allowances that the Commissioner amend the Regulation to include the hiring of persons as an authorized expense and provide more direction as to what length of time and expense is deemed reasonable for completing this work of closing a constituency office. Members’ Allowances Regulation, s.8 (2) Update Members’ Allowances Regulation s.8(2)(b.1) was amended in accordance with the “Decision on Payment of Expenses” provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 5. Limit on communication devices and services The Members’ Allowances Regulation states the following: Limits on devices Section 12(1.1)(a) (iv) provides for a limit on the communication devices and services a Member may have. Laptops, tablets and other mobile communication devices (other than a cellphone or smartphone that can be used as a telephone) are limited to one. On review, the Commissioner provided the decision that these mobile communication services are not part of the limit set out in section 12(1.1). Subsequently, Legislative Counsel provided the advice that both an MLA and Constituency Assistant could each have an iPad or tablet as these items are not seen as communication devices. Such devices would be considered Legislative Assembly Capital property. 19
When a new device is purchased under the Legislative Assembly smartphone/cellular plan the old device is returned to the Assembly. Under Capital property there is no requirement for the old device to be turned in when a new model is purchased. As a consequence, some Members have been assigned more than one device. Limits on services Section 12 (1.1) (a) (v) of the Members’ Allowances Regulation provides for a land line at an MLA’s constituency office. Section 12(1.1) (a) (vi) provides for fax and Internet services at the constituency office. The monthly billings from the service providers do not always separate the service provided. Billings may give the appearance of additional service lines. It is our recommendation to the next Commissioner for Allowances that the Commissioner reviews the devices and limits on services outlined in section 12(1.1) which includes 2(1.1)(a)(iv),(v) and (vi) and provide guidance to Members Allowances for the administration of these expenses. Members’ Allowances Regulation, s.12 (1.1) Update Members’ Allowances Regulation s.15.2(1) was amended in accordance with the “Decision Limit on Communication Devises and Services” provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 6. Travel Allowance entitlement New constituency boundaries came into effect October 4, 2011. This resulted in changes to constituency size and location, which impacted the travel allowances for the Southern Members only. Due to the change taking place partway through the fiscal year, the applicable travel allowances were prorated. It was identified that one constituency’s travel allowance was transposed incorrectly on one occasion at the full entitlement and not the prorated amount. As a result the travel allowance was overpaid by $182 to one MLA in 2011/12. 20
This $182 has been reallocated to the Constituency Allowance for the MLA according to section 12 (3) of the Members’ Allowances Regulation, which provides for authorized travel expenses to be claimed under the Constituency Allowance when the maximum travel allowance for the allowance period has been claimed. Members’ Allowances Regulation, s.20 (1) Update An audit of expense claims identified the issue of the full amount rather than the pro-rated amount entered for the one travel allowance claim. There was no requirement to consult with the Commissioner or to amend the Regulation in order to correct the error. 7. Constituency Assistants Allowance Maximum allowance The Members’ Allowances Regulation provides each Member under section 16.1(2) a maximum allowance per month (bi-weekly pay periods) for salaries including benefits to pay for constituency staff. The practice has been that if salary expenses are less than the maximum then the unused funds are rolled from the bi-weekly pay into the following pay period, which could give the appearance of the monthly amount being in excess of the maximum allowance. This practice has been applied since the institution of the Constituency Assistants Allowance in 2008. It is our recommendation to the next Commissioner for Allowances that the Commissioner amend the Regulation to include the bi-weekly rollover as an authorized process for unexpended funds. Members’ Allowances Regulation, s.16.1 (2) Update Members’ Allowances Regulation 16.1(2.1) was amended in accordance with the “Decision on Rollover of Funds for Constituency Staff Salaries” provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 21
No allowance during the election period Under the Members’ Allowances Regulation section 16.3, No constituency assistants allowance is payable for the period (the "election period") beginning on the day after the writs are issued for a provincial general election and ending at the end of election day. If the day the writs are issued is not the last day of a bi- weekly pay period, the limit for that period is to be prorated up to and including that day. It is our recommendation to the next Commissioner for Allowances that the Commissioner consider provisions of the Regulation with regard to Statutory pay during the writ period of an Election. Members’ Allowances Regulation, s.16.3 Update Members’ Allowances Regulation 16.3(1) was amended in accordance with the “Decision Statutory Holiday Pay” provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 8. Framing expenses The Legislative Management Commission agreed March 21, 2013 that Members be reimbursed for the framing expense of two MLA group photos per Legislature, provided one is the composite headshots and the second is the group photo of all Members seated in the Chamber. The Member’s Oath of Office, constituency map, and the recent photo of the Queen have also been reimbursed per Legislature. The framing expense for these specific items only has been allowed under office supplies. It is our recommendation to the next Commissioner for Allowances that the Commissioner amend the Regulation to include framing for these specific items as authorized expenses. Update Members’ Allowances Regulation 12.1(u) s.15.2(1) was amended in accordance with the “ Decision on Framing Costs” provided in the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Manitoba Legislative Assembly July 2017. 22
9. Compliance report This report is prepared in accordance with the provisions for section 52.6.1(1) of the Legislative Assembly Act. 52.6.1(1) Within six months after each general election, the manager of the Members' Allowances Office referred to in section 52.29 must (i) prepare a report that, for each type of allowance paid to members for the period consisting of all fiscal years that ended during the immediately preceding Legislative Assembly, states the total of the amounts paid for the period, (ii) describes any administrative or interpretive issues that arose in the administration of the allowance, and (iii) verifies whether the amounts were paid in compliance with this Part and the regulations under this Part; (b) arrange for the report to be audited by the Auditor General; and (c) submit the report, together with the auditor's opinion, to the Speaker The current wording of the Act has the potential to create interpretative challenges for the preparation of the Compliance Report as not all allowances paid to Members are paid by the Members’ Allowance Office, nor is there a clear definition of what allowances are intended to be captured and included in the compliance Report under this wording. It is our recommendation that this section of The Legislative Assembly Act be reviewed for any possible legislative amendments that could improve the clarity of this section, such as this section of the Act to clarify that the Compliance Report is prepared based on the allowances paid under The Members’ Allowances Regulation by the Members’ Allowances Office. Update No further action is required. Statements of Compliance-Verification of Amounts Paid have been revised to reflect the amounts reported in accordance with the provisions with s. 52.6.1(1)(a) of The Legislative Assembly Act, Members’ Allowances Regulation and s.52.21 of The Legislative Assembly Act and the Members’ Retirement Benefits Regulation. 23
10. Permanent Residence treated as temporary residence The Members’ Allowances Regulation provides under section 25.1(1) A non- Winnipeg member who owns and occupies a residence in Winnipeg as well as a residence outside the designated area may designate, in a form approved by the Speaker, one of those residences as a temporary residence for the purposes of this Part. Section 25.1(4) While a residence remains designated as a temporary residence under subsection (1) and the member continues to own and occupy the other residence referred to in that subsection. Section 5(1) A claim for reimbursement of an authorized expense (b) subject to subsection (2), must be accompanied by proof of payment Authorized expenses for the temporary residence include property taxes, mortgage interest, and common element fees, if the residence is a condominium. The practice had been to reimburse the Member for these particular expenditures monthly based on information the Member provided including mortgage amortization schedules, The City of Winnipeg TIPP information provided at the beginning of a calendar year, and letters from Condominium Boards for the monthly fees if applicable. Upon the fiscal year reconciliation, it was found that these forms of documentation were not sufficient on their own. Variances were identified and are in the process of addressing with the Member(s). As result of the findings, proof of payment must now accompany the documentation for the mortgage interest, tax installment, and if applicable condominium fee in order to be an authorized expenditure for reimbursement. Members’ Allowances Regulation s 25.1(1), s 25.1(4), s.5(1)(b) Update Members’ Allowances Office requires proof of payment in accordance with the Regulation. 24
Issues Arising of an Administrative or Interpretive Nature For the three fiscal year periods April 1, 2016 to March 31, 2019 Administration Branch There were no new issues arising of an administrative or interpretive nature for the 2017-2019 fiscal year period. 25
Issues Arising of an Administrative or Interpretive Nature Issues Carried Forward from the Prior Report (2012-2016 Fiscal Years) Administration Branch Issues Arising of an Administrative or Interpretive Nature Section 51(7) of the Members’ Retirement Benefits Regulation requires that the outgoing member make a written request for the payment of the transition allowance to be made as a lump sum severance benefit. In one situation an outgoing member verbally requested payment of the lump sum severance benefit based on extenuating circumstances. Human Resource Services accepted the verbal direction. Update No further action was required. 26
Statement of Compliance–Verification of Amounts Paid We advise, as at February 27, 2020, that to the best of our knowledge and belief: 1. The financial information in this Compliance Report (Report) properly reflects the allowance amounts paid to the Members of The Assembly by the Members’ Allowances Office for the fiscal years April 1, 2016 to March 31, 2019 in accordance with The Legislative Assembly Act and the regulations under the Act. 2. All accounting and financial records and related allowances data from files created and maintained by the Members’ Allowances Office have been made available to the auditor. 3. No shortages or other irregularities have been discovered. 4. No events have occurred and no matters have been discovered since the March 31, 2019 year end that would require adjustments to or disclosures in this Report. 5. This Report is in compliance with all the requirements of its governing legislation, including regulations, in consideration of the items noted in the section of this Report titled “Issues Arising of an Administrative or Interpretive Nature”. Original signed by: Clerk of the Manitoba Legislative Assembly Director Members’ Allowances Office Manitoba Legislative Assembly 27
Statement of Compliance–Verification of Amounts Paid We advise, as at February 27, 2020, that to the best of our knowledge and belief: 1. The financial information in this Compliance Report (Report) properly reflects the allowance amounts paid to Members of The Assembly for the fiscal years April 1, 2016 to March 31, 2019 in accordance with section 52.21 of The Legislative Assembly Act and the Members’ Retirement Benefits Regulation and in accordance with sections 10(2)(c), 13, 16.1, 16.2, and 16.3 of the Members’ Allowances Regulation for constituency assistants salaries and any related amounts charged to constituency expenses. 2. All accounting and financial records and related allowances data have been made available to the auditor. 3. No shortages or other irregularities have been discovered. 4. No events have occurred and no matters have been discovered since the March 31, 2019 year end that would require adjustments to or disclosures in this Report. 5. This Report is in compliance with all the requirements of its governing legislation, including regulations, in consideration of the items noted in the section of this Report titled “Issues Arising of an Administrative or Interpretive Nature”. Original signed by: Executive Director of Administration Director of Human Resources Manitoba Legislative Assembly Manitoba Legislative Assembly 28
Appendices Appendix A- Commissioner of Salaries, Allowances, and Retirement Benefits Summary of Decisions, July 2017 http:www.reviewcommissioner.mb.ca/report17.pdf Commissioner’s Report July 2017, Commissioner Michael Werier released the Report of the Commissioner on Salaries, Allowances and Retirement Benefits for Members of the Legislative Assembly. As a result of the Commissioner’s report, changes to the regulations and to allowable expenses and claiming procedures are in place. The report, effective July 26, 2017, contained the following decisions relating to Members’ Allowances: DECISION ON CONSTITUENCY OFFICE SPACE A fund of up to $5,000.00 shall be established for each constituency to be used for specific accessibility renovations. This is to be a one time amount available during the term of the Government. Each Member will be required to apply to the Assembly for pre-approval of such an expense. Section 11(1)(c) of the Regulation shall be amended to include provisions to deal with this authorized expense. DECISION ON BANK CHARGES The Regulation shall be amended to set out that the $100 per month is exclusive of charges for cheques. DECISION ON COMMUNICATION SERVICES The Regulation shall be amended to include phone service through the internet as an authorized expense. DECISION ON LIMIT ON COMMUNICATION DEVICES AND SERVICES When a Member purchases a new phone, the former device must be returned to the Legislative Assembly unless the Member buys out the contract. If a replacement tablet or iPod is being purchased as capital property, the old one must be returned to the Legislative Assembly. The Regulation should be amended to reflect this requirement. 29
DECISION ON ZENITH TELEPHONE - SECTION 12(1)(d)(v) This section of the Regulation can be deleted as Zenith telephone service is no longer utilized. DECISION ON INCIDENTAL MAILINGS The Regulation shall be amended so that the content of the mailings must be submitted to the Members’ Allowances Office in order to get reimbursement for this authorized expense. DECISION ON CAPITAL PROPERTY The Regulation shall have a section added which makes it a condition of the Member’s purchase that they will not re-sell the capital property to a newly elected Member or to a member of the public. DECISION ON TOOLS It is reasonable that an office have a basic toolbox on hand to deal with day-today requirements of maintaining an office. I do not believe that it is necessary to have power tools purchased for the operation of a constituency office. DECISION ON ADVERTISING I see no reason to amend the Regulation on advertising at this time. DECISION ON FRAMING COSTS The Regulation shall be amended to include the framing expense of two Member group photographs, provided one is the composite headshot and the second is the group photograph of all Members in the Chamber, as well as framing costs for the Member’s Oath of Office, constituency map, and the Queen, as authorized office expenses. 30
DECISION ON TOBACCO AS AN AUTHORIZED REPRESENTATION EXPENSE The Regulation shall be amended to reflect that the purchase of items for use at community events related to cultural practices are authorized expenses. DECISION ON TABLE OR BOOTH RENTALS AT COMMUNITY EVENTS The Regulation (s. 14) should have added to it a section authorizing recovery of expenses such as booth or table rentals at community events other than the Member’s own events as long as they are incurred for the purpose of access and service to constituents. DECISION ON SOUVENIR ITEMS The Regulation shall be amended to set out that lapel pins have symbols connected to Manitoba and that the magnets be in the form of a business card. The reference to the Legislative Assembly gift shop should be deleted and the section amended to state “and other similar type of souvenir items”. DECISION ON EVENT TICKETS Firstly, I think that it is appropriate to extend the representation expenses to purchasing tickets to attend events at the Chamber of Commerce or similar types of organizations. This allows a Member to meet any constituents who are discussing issues which are relevant to their work as elected representative. Secondly, as to the current definition in s. 14(g) of the Regulation, I am comfortable that it best describes the intention to limit attendance to community not-for-profit events. Members should use their best efforts to provide the Members’ Allowances Office with substantiation as to the nature of the entity hosting the event. DECISION ON PLANTS I believe that a plant falls within the spirit and intent of the Regulation and it shall be added to Section 14(a) of the Regulation. 31
DECISION ON ROLLOVER OF FUNDS FOR CONSTITUENCY STAFF SALARIES The Regulation shall be amended to include the bi-weekly rollover as an authorized process for unexpended funds. DECISION ON STATUTORY HOLIDAY PAY The Regulation shall be amended to allow for this statutory payment in addition to limits of the Constituency Assistants Allowance. DECISION ON MEAL EXPENSES Section 21(1)(d) of the Regulation shall be amended to read “the expense of meals in the province at civil service rates”. DECISION ON AUTHORIZED TRAVEL EXPENSES Section 21(1)(e) of the Regulation shall be amended to state as follows: “……… the expense of commercial accommodation in accordance with standard hotel single room rates.” DECISION ON MAXIMUM OUT-OF-PROVINCE TRAVEL EXPENSES Section 21(3) of the Regulation shall be amended to identify the following expenses: (a) the actual expense of transportation other than by private vehicle; (b) the expense of transportation by private vehicle, equal to the kilometric distance multiplied by the kilometric rate; 9 (c) the expense of meals at the receipted rate or at the out-of-province meal rates; (d) the expense of commercial accommodation standard single room rate. DECISION ON LIVING ALLOWANCE Subsection 25.1(4)(b)(vii) of the Regulation shall be amended to state utilities, including basic cable television. A subsection should be added to clarify that eligible expenses for the owned second temporary residence does not include lawn and snow services. This should be the personal expense of the Member. 32
DECISION ON PAYMENT OF EXPENSES Section 8(2) of the Regulation shall be amended to include a section that a person or persons can be hired to assist in closing the constituency office to a total maximum of fifty (50) hours’ work. DECISION ON APPEALS - LIMITATION DATE No amendment is needed to s. 31(3) of the Regulation. DECISION ON LIABILITY INSURANCE I would allow that individual Members could attempt to purchase coverage for defamation and/or claims relating to the employment of Constituency Assistants. The funding would have to come out of their constituency allowance. The Regulation shall be amended to allow this as an authorized expense. DECISION ON SEVERANCE/TRANSITION PAYMENTS In the appropriate sections, the Regulation shall be amended to delete the word “allowance” and substitute the word “payment”. DECISION ON EMPLOYER PAID BENEFITS All employer paid benefits should be set out in the Regulation and this shall be done in the ensuing amendment. 33
Appendix B - Legislative Assembly Management Commission – Annual reports Commissioner Decisions Impacting MAO approval of MLA Expense Claims LAMC Annual Report – April 1, 2016 to March 31, 2017 APPOINTMENT OF A COMMISSIONER TO REVIEW MLA INDEMNITIES, ALLOWANCES AND RETIREMENT BENEFITS According to s. 52.7(2) of The Legislative Assembly Act, the Commission must appoint a Commissioner within six months after each general election to decide on the appropriate salary, allowances and retirement benefits for Members and to make regulations to implement them. On June 28, 2016, the Commission agreed that Mr. Michael Werier be offered the appointment as the MLA Indemnities, Allowances and Retirement Benefits Commissioner. Subsequent to the offer, Mr. Werier accepted the appointment. Mr. Werier has previously served as the Commissioner following the 2007 and 2011 provincial general elections, and has considerable expertise in reviewing the allowances, salaries and retirement benefits of MLAs. LAMC Annual Report – April 1, 2017- March 31, 2018 ACCESSIBILITIES ISSUES According to s.37 of The Accessibility for Manitobans Act, there is a legislative requirement for the Commission to report actions taken by the Commission with respect to accessibility issues. The wording of the Act states: s. 37 In carrying out its duties and responsibilities under The Legislative Assembly Management Commission Act, the Legislative Assembly Management Commission must (a) have regard for any accessibility standards; and (b) report to the public – at the times and in the manner the commission considers appropriate – the measures, policies, practices and other requirements implemented by the commission to make progress towards achieving accessibility in respect of the Assembly and its offices. In, 2017 the Commissioner for MLA Indemnities, Allowances, and Pension Benefits added at the request of the Assembly, $5000 to the Constituency Allowances of all MLAs, specifically to provide renovations to constituency offices to enhance accessibility. This funding is in place for the duration of the Legislature. 34
Appendix C – Commissioner of Appeals Decisions Impacting Members’ Allowances Approval of Expense Claims Date Appeal Issue Decision September 9, 2016 Fuel expenses An opinion was requested whether The commissioner advised the van or not fuel expenses associated rental is eligible under s.27.1. The with a van rental to move contents former Member would have hired a from a temporary second mover but chose not to. Gas purchases residence in Winnipeg would be are viewed as an eligible expense. eligible. October 30, 2017 Wreath for As there are no Legions located in The Commissioner advised the purpose Remembrance the MLA’s constituency, the of the representation expense is to Day Member purchased a wreath laid allow a Member to provide service to at a service at a Legion attended constituents. It is a tradition and by constituents located outside of expectation that Members participate in the constituency boundaries. such events. Reimbursement of such an expense does not offend the spirit and intent of the Regulation. This decision would apply to all MLAs under similar circumstances. February 1, 2018 Conference A Member registered for a The Commissioner recommended Registration conference but then was unable to Members not to register for a Fees find accommodations in the conference that has non- refundable vicinity. The fees were non- fees without first having a confirmed refundable. hotel booking at an acceptable rate. July 17, 2018 Cookies as an Members’ Allowances requested The Commissioner advised that he office supply the Commissioner’s opinion as to believed the public would view this as a whether cookies could be viewed typical office supply and therefore it is as a typical office supply. The his view that it would be an eligible intent is to have a package on expense under the Regulation. hand to offer with a cup of tea or coffee while meeting with constituents. October 23, 2018 Registration fee Members’ Allowances requested Members should be advised that for participation the Commissioner’s opinion as to registration costs for such events will in a Fundraising whether the cost of registration for not be treated as an eligible expense. Run or similar this event or other similar events is events. an eligible expense under the Regulation. 35
Date Appeal Issue Decision October 23, 2018 Scholarships A Member raised concerns with The Commissioner advised the current the Commissioner regarding system does not require change and Members having to pay schools should be maintained. directly for scholarships and then seek reimbursement from MAO. The concern being it imposes a financial burden on a Member and is out of step with accepted practice in the business community. December 3, 2019 Advertising The Member advertised the The Commissioner allowed the appeal Christmas Open House at the based on the Member’s explanation for Legislative Building. The expense his constituents to be aware of the was denied as it was not the event. The Commissioner accepted that Member’s own event. The the expense was incurred to provide Member then appealed to the access and service to constituents. He Commissioner. confirmed that advertising by MLAs for future Legislative Christmas Open Houses would be eligible. November 27, 2019 Constituency Members have held events which The Commissioner advised there Forums or were considered to be community seems to be some uncertainty about the meetings wide focusing on issues affected application of the Regulation to these by the city and the Province and community events and determined it that Members were acting not only would be advisable to set out some for the purpose of access and guidelines to assist Members. He service to constituents but in their provided content to be incorporated into roles as party critics. the guidelines. Community events are for providing access and service to the Member’s constituents. Not intended to be community- wide events. Advertising be restricted to the constituency. 36
You can also read